Rural Pubs: Fiscal Support

Debate between Mike Wood and Saqib Bhatti

Wednesday 17th June 2026 Westminster Hall

[Saqib]

Bhatti: I thank the hon. Member for her intervention, but I think we should have a rule in this House that when a Member says they have the best constituency, they owe everyone a pint. [Hon. Members: “Hear, hear!”] I could get used to this popularity. The hon. Member is absolutely correct, and I will come to the social value of pubs as a meeting place.

When people think of Britain, they of course think of our iconic landmarks such as Buckingham Palace or Big Ben, but they also think of our red post boxes, our black cabs and our rural pubs. Our truly unique rural pubs are the pillars of our local communities, serving as meeting points for old friends, destinations for wedding receptions and hubs for our community.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

Does my hon. Friend recognise that, for many rural locations, the rural pub is the last-standing business in the village? It is the post office, the village store, the job club, the parent and child club and the club for the elderly and lonely. I have even seen, through Pub is the Hub, a barber in the lounge of a pub. It cuts people’s hair during the day and serves them drinks in the evening. Does my hon. Friend agree that when the Government impose extra fiscal pressures on pubs, what they lose is probably worth far, far more than the revenue they think they are gaining?

[Saqib Bhatti]

I could not agree more. That is exactly why we are here today. I am really concerned about the core of our communities being hollowed out by Government interventions. For elderly people in particular, a good pub lunch with great drinks and warm food can be a staple of the weekly routine. It is therefore no wonder that two thirds of adults believe that their local pub is vital to combating loneliness and social isolation. On the back of my hon. Friend’s intervention, I gently ask the Minister whether he recognises that losing a rural pub has a huge impact on our rural communities. Where are those people meant to go?

Dr Thomas Thurnell-Read from Loughborough University has conducted some fascinating research into the social value of pubs in local communities. The project looked at the impact of pub closures on communities and made it very clear that the loss of a pub, as my hon. Friend the Member for Kingswinford and South Staffordshire (Mike Wood) said, is so much more than just the loss of a business. Dr Thurnell-Read made it clear that the closure of a pub echoes throughout the entire community, impacting friendships, identities and vital local support networks in ways that cannot be captured by data alone.

As traditional community infrastructure such as banks, village halls and post offices also come under pressure, pubs are more important than ever as anchors in our rural communities. For rural areas, some pubs now act as more than just a place to meet and socialise. They have essential services such as micro post offices, prescription drop-offs, wi-fi hubs and barbers, as my hon. Friend mentioned. They even house part-time library shelves.

Research by the Rural Services Network has found that for every £1 invested in the provision of services and activities in the pub, an average of £8.28 of social value is created. It found that the diverse new services offered by pubs in local communities have lasting positive impacts on the overall wellbeing of individuals and their families, as well as on reducing loneliness, improving mental health and giving people greater independence.

Having spoken at great length about the value and importance of rural pubs, I am really concerned about the Government’s intervention and the lack of support for this vital industry. Some of our best pubs are in the Chancellor’s crosshairs. Labour has hit rural pubs with increased taxes and a litany of new burdensome legislation that is killing them off. The pub and brewing sector is among the most highly taxed of any business sector, with around £1 in every £3 spent in the pub going back to HMRC.

One of the most egregious taxes is the Government’s national insurance raid on our businesses. Having spoken with representatives of the UK’s beer and pub sector, there is no doubt that Labour’s rise in national insurance has had a huge impact on rural pubs. Just last week, Simon Emeny, the chairman of Fuller’s, said that pubs are facing “unprecedented” pressure from Labour’s tax rises. Given the nature of pub work, the lowering of the national insurance threshold has had a deep impact on publicans. Pubs are one of the major employers of young people. The sector employs 58% of its people on a part-time basis, which means that lowering the threshold has forced pubs to reconsider their hiring practices.